+++NEWS+++ Iran starts production of DRI using homegrown technology

*** NEWS *** Iran starts production of DRI using homegrown technology

Perth, Australia—The first direct reduction iron module using domestic technology has started production in Shadegan, southwest Iran, according to Hasan Karbaschi, manager of the Iranian branch of Mines and Metals Engineering GmbH. "This is an 800,000 mt/year module installed in Shadegan Steel and is the first time Persian Reduction (PERED) technology is being used in practice. After 24 hours of operation the metallization result is 93%, which is notable," he said Friday. "The technology was invented and patented by MME, an Iranian origin company in Germany, and there are three other modules under construction by MME in Iran: in Mianeh (East Azarbaijan province), Baft (in Kerman province) and Neyriz (in Fars province) which are due for completion in the current Iranian year (to March 2018)." All four projects are designed for output of 800,000 mt/year of DRI using natural gas. There are various modules and megamodules available with capacities ranging from 400,000 to 1.8 million mt/year. These can produce DRI, hot-briquetted iron and hot direct reduced iron. "The Iranian steel industry uses HYL and Midrex technologies at the moment, but we believe that PERED has more advantages compared to other processes because of the lower initial investment required and operational costs plus it is more efficient," Karbaschi said. He said the length of time required for MME to build a greenfield module project is 24-30 months, but in future this is likely to decrease as the company gains experience. Shadegan Steel was one of eight steel projects begun in 2008 to improve the economic situation in the country's developing provinces, but has experienced a long delay because of financial problems. The company is 65% owned by Iran's second-biggest steel producer, Khouzestan Steel Co. (KSC), and 35% by Imidro. Iran's nominal production capacity of DRI is 24.4 million mt/year, according to a report recently published about Iran's steel plans.
Copyright – Platts 2017 - Steel Markets Daily, distributed with the explicit permission of the author
Steel Markets Daily 23/6/2017

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